BNF Capital pays $21M for mixed-use Delshah Capital property in Chelsea through bankruptcy

BNF Capital through the entity Ninthview LP paid $21 million through a structured bankruptcy sale to Delshah Capital through the entity Delshah 60 Ninth LLC for the three-unit mixed-use building (S3) at 58-60 Ninth Avenue in Chelsea, Manhattan. The expected use is cash flowing.
The deal closed on July 2, 2025 and was recorded on July 11, 2025. The property has 7,719 square feet of built space and 12,832 square feet of additional air rights for a total buildable of 20,546 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $2,720 and the price per buildable square foot is $1,022 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The seller bought the property on April 8, 2013, for $18.2 million. The signatory for Delshah Capital was Michael Shah . The signatory for BNF Capital was Neil S. Miller . The contract date was January 23, 2025. PincusCo was the first to report on this transaction, after it went into contract.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer BNF Capital purchased one property in one transaction for a total of $20.8 million and has no record it sold any properties over the past 24 months.
The seller Delshah Capital had not purchased any other properties and sold eight properties in eight transactions for a total of $117.2 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Michael Shah, head officer and Bonni Lippman, agent. The business entities are Delshah 60 Ninth Llc and Delshah 60 Ninth Llc.

The property

The mixed-use building with 3 residential units in Chelsea has 7,719 square feet of built space and 12,832 square feet of additional air rights for a total buildable of 20,546 square feet according to a PincusCo analysis of city data. The parcel has frontage of 34 feet and is 100 feet deep with a total lot size of 3,413 square feet. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The property is in the Gansevoort Market Historic District. The city-designated market value for the property in 2022 is $6.9 million.

Violations and lawsuits

The property was involved in three lawsuits and one bankruptcy over the past two years. The highest value suit was a $28 million commercial foreclosure concerning a loan filed on July 17, 2024, by Series 2017-C5 and K-Star Asset Management against Delshah Capital, Michael Shah, Ranjana Shah, and Darshan Shah. The bankruptcy was filed on May 8, 2025, by Delshah Capital and Michael K. Shah citing assets of $30 million. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on December 15, 2016. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Chelsea, The bulk, or 35 percent of the 52.5 million square feet of commercial built space are office buildings, with elevator buildings next occupying 28 percent of the space. In sales, Chelsea has the 7th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Chelsea has 1.3 times the average amount of major developments relative to other neighborhoods and is the 22nd highest in Manhattan. It had 1.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 14 of the 26 commercial properties representing 205,321 square feet of the 322,590 square feet. The largest owner is Felix Bernardo, followed by Superior Management and then Tavros Holdings.
There are no active new building construction projects on this tax block.

The majority, or 50 percent of the 322,590 square feet of built space are walkup buildings, with elevator buildings next occupying 23 percent of the space.

The seller

The PincusCo database currently indicates that Delshah Capital owned at least 35 commercial properties with 758 residential units in New York City with 832,360 square feet and a city-determined market value of $171.6 million. (Market value is typically about 50% of actual value.) The portfolio has $602.2 million in debt, with top three lenders as Arbor Realty Trust, Apollo Global Management, and Signature Bank respectively. Within the portfolio, the bulk, or 52 percent of the 832,360 square feet of built space are elevator properties, with walkup properties next occupying 34 percent of the space. The bulk, or 52 percent of the built space, is in Brooklyn, with Manhattan next at 48 percent of the space.

The buyer

The PincusCo database currently indicates that Bnf Capital owned at least one commercial property with five residential units in New York City with 11,520 square feet and a city-determined market value of $6.3 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single elevator property. It is located in Manhattan.

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